Several factors are driving change when it comes to First Notice of Loss (FNOL). Before sophisticated technology became commonplace, first notice of loss was almost universally initiated via a phone call. Now, policyholders can log onto their computers or phone apps to trigger FNOL. Although this change seems monumental, it is nothing compared to the latest trends looking to shake up the industry.
The Shifting Definition of Work
Until recently, the workforce was 100 percent human. With the rise in artificial intelligence (AI) and machine learning, however, that is set to change. Machines can now finish several tasks in minutes that would take humans several hours to complete. While businesses cannot and should not automate all tasks, automation is changing how people perform their jobs in the insurance industry.
The Cycle of Retiring and Rising Employees
The insurance workforce is on the precipice of major change. The industry expects around 70,000 of its professionals will retire in the coming year. While many are looking to millennials to fill that gap, there is the significant problem that almost two-thirds of them have a negative view of the insurance sector. Even though millennials will make up almost half of the workforce by 2020, the insurance industry will still have a labor problem on its hands if it does not change millennials’ perception of the insurance sector.
The Decline of Mobile App Use
In two years’ time, experts predict that mobile app use will drop by 20 percent. However, this does not mean technology is a waning trend. Instead of using mobile apps to initiate FNOL or ask claims questions, people will utilize chatbots. This technology relies on AI and language processing to complete simple tasks while providing satisfactory interactions. Even though many rebuke the idea of chatbots, this technology has made major strides in recent years. The experience is so seamless that many individuals do not realize they are chatting with a machine rather than a person.
Insurers need to keep up with industry trends or risk falling behind their competition. That is why Actec offers FNOL and full cycle claims solutions to address insurance company’s needs. To learn more about improving FNOL and claims processing, contact us today.